18 August 2009
WE HAVE TAKEN BUYERS CREDIT AGAINST IMPORT FROM BANK OF INDIA,SANFRANCISCO AGENCY(USA)VALUING USD 44135.39.AFTER 120DAYS WE HAVE TO REIMBURSE THE SAME AMOUNT ALONG WITH INTEREST I.E USD 496.44. MY QUESTION IS: 1)IS THE INTEREST REMITTANCE ATTRACTS TDS @10%.IF SO, UNDER WHICH CLAUSE OF DTAA IT IS APPLICABLE?
2)ANY INDIAN FINANCIAL INSTITUTION/BANK WHO LENDS FROM HIS OVERSEAS BRANCH AND EARN INTEREST ON ITS PRINCIPLE,IS IT TAXABLE IN INDIA?PLEASE CLARIFY.
CAclubindia
